Total has revealed that it is selling several “non-core” assets worth more than $400 million.
The assets comprise Total’s wholly owned subsidiary, Total E&P Deep Offshore Borneo BV, which holds an 86.95 percent interest in Block CA1, and Total’s marketing and services (M&S) businesses in Liberia and Sierra Leone.
Total’s wholly owned subsidiary in Brunei is being sold to Shell and its M&S businesses in Liberia and Sierra Leone are being sold to Conex Oil & Gas Holdings Limited.
“These sales will contribute to Total’s ongoing divestment program and demonstrate our ability to relentlessly high grade our portfolio,” Jean-Pierre Sbraire, Total’s chief financial officer, said in a company statement.
“In the current context of low oil prices, these transactions support the action plan announced to weather the crisis,” he added.
Last month, Patrick Pouyanne, the chairman and chief executive officer of Total, announced an action plan which included organic capital expenditure cuts of more than $3 billion. The plan also included $800 million of savings on operating costs this year and a suspension of the company’s buyback program.
“The challenges we are facing are important but in conclusion I have faith, I have faith in you all, in all the teams,” Pouyanne said in a video message to his workforce on March 23.
“We survived the storm of 2015, we will survive the storm of 2020 thanks to your work and also to our group values, one of which is especially dear to me, namely, stand together. Standing together we will fight this coronavirus crisis, standing together we will handle this oil price crisis and standing together we will build together the Total of tomorrow,” he added.
Total, which describes itself as a “major energy player”, has 100,000 employees and is active in more than 130 countries, according to its website.
To contact the author, email andreas.exarheas@rigzone.com
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